| FY 15 | FY 14 | YoY growth | % of FY 15E forecasts | Q4 15 | Q3 15 | QoQ | | | Gross Earnings | 152,508 | 148,637 | 2.6% | 107% | 43,214 | 31,941 | 35.3% | | | Net interest income | 63,937 | 72,634 | -12.0% | 92% | 15,227 | 14,274 | 6.7% | | | Non-interest revenue | 25,760 | 28,185 | -8.6% | 96% | 6,131 | 7,099 | -13.6% | | | Operating expenses | (66,979) | (66,304) | 1.0% | 96% | (16,491) | (16,835) | -2.0% | | | Impairment charges | (15,033) | (10,640) | 41.3% | 74% | 254 | (11,540) | N/A | | | PBT | 7,768 | 23,943 | -67.6% | 127% | 5,206 | (7,003) | N/A | | | PAT | 4,761 | 22,133 | -78.5% | 97% | 2,895 | (6,435) | N/A | | | EPS | 0.24 | 1.12 | -78.5% | 97% | 0.15 | (0.32) | N/A | | | Source: Company data *unless otherwise stated | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet (N’ million)* | |
| FY 15 | FY 14 | YoY growth | % of FY 15E forecasts | 9M 15 | QoQ | | Loans | 592,957 | 617,980 | -4.0% | 103% | 568,496 | 4.3% | | Total Assets | 1,159,534 | 1,169,365 | -0.8% | 100% | 1,171,349 | -1.0% | | Deposis | 700,217 | 733,797 | -4.6% | 98% | 703,227 | -0.4% | | Total liabilities | 997,143 | 1,008,999 | -1.2% | 100% | 1,012,991 | -1.6% | | Net Assets | 162,391 | 160,365 | 1.3% | 98% | 158,358 | 2.5% | | BVPS | 8.20 | 8.10 | 1.3% | 98% | 8.00 | 2.5% | | Source: Company data *unless otherwise stated |
Key ratios | | | FY 15 | FY 14 | change (pps) | Q4 15 | Q3 15 | change (pps) | | Asset Yields | 13.0% | 13.7% | -0.7 | 13.3% | 8.7% | 4.6 | | WACF | 6.7% | 5.5% | 1.2 | 9.4% | 4.2% | 5.2 | | Net interest margins | 6.7% | 8.4% | -1.7 | 6.4% | 5.9% | 0.5 | | Cost-income ratio | 74.7% | 65.8% | 8.9 | 77.2% | 78.8% | -1.6 | | Cost of risk | 2.6% | 1.7% | 0.8 | -0.2% | 8.1% | N/A | | PBT margins | 5.1% | 16.1% | -11.0 | 12.0% | N/A | N/A | | PAT margins | 3.1% | 14.9% | -11.8 | 6.7% | N/A | N/A | | Effective tax rates | 38.7% | 7.6% | 31.2 | 44.4% | 8.1% | 36.3 | | ROE | 4.8% | 14.6% | -9.7 | | | | | ROA | 0.4% | 2.0% | -1.6 | | | | | CAR | 16.9% | 19.3% | -2.4 | | | | | Source: Company data |
Commentary · First City Monument Bank Group Plc. (FCMB) released audited FY 2015 results, wherein gross earnings rose 2.6% YoY (9M: +2.4%) to N152.5 billion while PBT and PAT climbed 68% (9M: -85%) and 79% higher (9M: -87%) YoY to N7.8 billion and N4.8 billion respectively. · In addition, FCMB announced a dividend of N0.10 per share (FY 15E: N0.05, FY 14), which translates to ~12.5% dividend yield at current pricing. · A quick read through Q4 15 numbers show a recovery from the impairment hit Q3 15, when the bank booked an N11.5billion write-down largely on legacy downstream O&G loans, with FCMB recording recoveries of N254 million over the quarter. · The benign trend in loan loss provisioning line masked a spike in Q4 15 interest expense (despite commencement of monetary policy easing in Q4 15) with annualized WACF jumping 520bps QoQ to 9.4%. · FCMB trades at a current P/E and P/B of 3.3x and 0.1x respectively which are both at discount to peer averages. Relative to last trading price of N0.8, our FVE at N1.84 implies a BUY rating. · More analysis to follow. · Conference call details to follow. |
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